Housing deposit calculator
How much down payment you need and how many months it takes to save it, with interest on your savings and a closing-cost estimate.
Your down payment plan
Down payment goal
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- Months to goal
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- Goal date
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- Interest earned on savings
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- Still to save
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- Loan amount
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- Closing costs, estimated
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- Total cash needed
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Down payment options
Same home price, savings and pace, different down payment sizes.
| Down payment | Amount | Months to save it | Notes |
|---|
Savings pace scenarios
How saving more or less each month changes your timeline to the same goal.
| Monthly savings | Months to goal |
|---|
How it works
A down payment savings calculator works out how many months it takes to accumulate the down payment for a home purchase, given your current savings, monthly contribution and interest earned along the way at a given APY.
- Enter the home price and down payment
5% is a common minimum, 20% avoids PMI on a conventional loan.
- Add your savings and pace
What you already have, what you can save each month, and the rate it earns.
- See your timeline
Months to goal, the goal date, and how the options compare.
The savings formula
Each month, interest is earned on the current balance, then the monthly contribution is added:
Next balance = balance × (1 + APY / 12) + monthly savings
The calculator repeats this month by month until the balance reaches your down payment goal.
Understanding down payments
- 3 to 5%: the FHA and conventional minimum, which requires PMI.
- 10%: a middle ground between upfront cash and loan terms.
- 20%: avoids PMI entirely and usually gets the best rates and strongest offers.
Other costs to plan for
- Closing costs: typically 2 to 5% of the purchase price, covering lender fees, title insurance, appraisal and prepaid taxes and insurance. Adjust the field above to match your lender's estimate.
- Home inspection: commonly $300 to $500, paid separately before closing.
- Moving expenses: commonly $1,000 to $5,000 depending on distance and how much you move yourself.
- Reserve fund: keep 3 to 6 months of expenses aside after closing; do not drain every dollar into the down payment.
Down payment assistance
Many states and cities run first-time buyer assistance programs offering grants or low-interest loans toward a down payment. Availability and terms vary by location and change often, so search your state housing finance agency's own site for current programs rather than relying on a fixed list here.
Frequently asked questions
How much down payment is required to buy a home?
Conventional loans typically require 5 to 20% down, though some programs allow as little as 3%. FHA loans require 3.5% with a credit score of 580 or higher. Putting down less than 20% on a conventional loan usually triggers PMI, private mortgage insurance, costing roughly 0.5 to 1% of the loan amount annually. The down payment options table above shows 5%, 10% and 20% side by side.
What are closing costs and does the calculator include them?
Closing costs are fees charged at settlement, including lender origination fees, title insurance, appraisal, and prepaid taxes and insurance, typically totaling 2 to 5% of the purchase price. The calculator has an editable closing cost percentage, defaulted to 3%, and shows the estimate alongside the down payment so you can see the total cash needed, not just the down payment.
How does the calculator estimate time to reach my savings goal?
Each month it adds interest on the current balance at your APY divided by 12, then adds your monthly contribution, and repeats until the balance reaches your down payment target. This month-by-month simulation is equivalent to the future value of an annuity formula, but easier to follow and easy to extend with a changing contribution later.
Does the calculator factor in interest on my savings?
Yes, you enter an expected APY, annual percentage yield, on your savings account. The calculator applies monthly compounding at APY divided by 12 and shows total interest earned separately, which can meaningfully accelerate your timeline if you use a high-yield savings account currently yielding 4 to 5%.
What is PMI and when can I stop paying it?
PMI, private mortgage insurance, protects the lender if you default and is required when your down payment is less than 20% of the purchase price. On a $400,000 home, PMI can cost $1,600 to $4,000 a year. Once your loan-to-value ratio reaches 80% through payments or appreciation, you can request PMI cancellation. Putting 20% down avoids it entirely.